In fact what makes the quality of a university is really the quality of its students. It is completely self-fulfilling. Good reputation attracts good students who will become good researchers, or do successful careers, further contributing to the good reputation.

In a way universities are competing for a finite resource (smart and hard working students). Unless we as a society find a way to increase the supply of smart and hard working students.

Hard working we can do by more social pressure.

Smart,... Hum. We get into the nature vs nurture debate, on which philosophers and sociologists fight over, but which should really be settled by neuro-scientists!